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How do you craft a strategic plan for a group of companies? Why do so many efforts end up with nothing more than “last-year’s-plan-plus-5%?” Discard this path of least resistance if you hope to capitalize on COVID opportunities.

Conglomerates are, in the best of times, difficult to plan for. Units compete for resources in different markets, creating a headache for whoever must make an optimal allocation. It’s a challenge of comparing apples to oranges by executives who don’t specialize in either fruit.

The hope is that by the end of the day, each business unit has a unique set of marching orders: a custom “breakthrough strategy”. It should be powerful enough to meet customer’s unmet needs, conform to disruptive technology trends and prevent competitors from gaining a foothold.

Furthermore, at the group level, the overall strategy shouldn’t be just a grab bag of ideas. Each individual plan should be part of a puzzle that makes up a single coherent picture.

However, I have sat in group meetings in which business unit MD’s flounder when asked for their organization’s strategy. After a bunch of PowerPoint slides, it becomes clear: they have no real strategy. At most, they have a list of tactics.

Furthermore, in these pandemic times, most are facing game-changing disruptions. This requires them to engineer the “next normal.” More often than not, they simply aren’t equipped to get the job done.

Before your business units drift into becoming another Nokia or Blackberry (i.e. a has-been), how can your group of companies prevent its component businesses from failing?

Step 1 – Engage business units in long-term planning

The simplest request is for business units to lengthen their planning horizons. Ask them to look 15-30 years out. Give them the examples, support and templates they need to produce a feasible, detailed plan. While it needs to account for current trends, the team shouldn’t be limited by them.

After all, this is not an exercise in predicting the future, but crafting one which includes preferred outcomes.

For the average MD of a business unit, this is likely to be a tough activity. But even clumsy attempts will push executives into the right zone of discomfort.

Step 2 – Develop leaders’ everyday planning skills

To improve C-suite skills, don’t turn strategy into a onetime or annual event. Instead, train them to think strategically at all times.

Some group CEO’s mistakenly assume this is easy. In their role, they spend 80% of their time on strategy, and 20% on daily operations. However, the reverse is true for their business unit MD’s. The fact is, in their progress up the ranks, the drumbeat for immediate results kept them awake at night. Their ability to adapt quickly helped them get promoted.

As such, your organization may not be organized to think strategically, and MD’s will find this to be a challenge. Don’t let them languish.

Instead, give them the training and coaching to implement their strategy from month to month. Their environment is changing so fast that if they don’t keep the big picture in mind, they could miss out on opportunities created by disruptions like COVID.

What if they fail to grow the required skills? Expect big mistakes that destroy value and produce a “diversification discount” in which the sum of the parts of your company is greater than the whole.

Step 3 – Make Clear Proposals

Once a business unit has completed its planning, MD’s must advance proposals to the central group organization. This is pure lobbying: an appeal to support the business unit’s strategic plan with tangible resources.

Your leaders may also need to be trained to become balanced, fact-based advocates of the specific value they can bring in the mid to long term.

Their clarity is essential. Why?

As group executives hear a range of proposals, they need to make collective decisions about the direction of the entire organization. Consequently, business units will receive good news or bad news depending on decisions made to allocate funds, attention and power.

As such, MD’s must be clear as the future of the organization relies on the quality of their analysis. If they do a poor job, bad decisions will be made: a harsh reality.

But the worst decision of all is not to make any. Some companies drift along, sitting back to watch what happens next.

By then, the savviest staff members have found jobs elsewhere, looking for real leaders to follow. Customers uncover better products and services, and value is destroyed.

While it’s hard to marshal a conglomerate strategy, it’s a problem which must be tackled to assure the future of the entire organization.

The task of negotiating with other people is part and parcel of business-life. However, many hate having to do so, and a large percentage do so ineffectively. One cause is that most focus on the quality of their speaking, fixating on what they need to say. By contrast, masterful negotiators take a different approach: deep listening.

Years ago, I had the fortune of picking up “Getting to Yes” by Roger Fisher and William Ury. This classic book on negotiations outlines several principles; one of which is to listen keenly to uncover the true intent behind someone’s position.

The idea is simple enough: when people are in a negotiation, the job of making requests of their counterparts is unavoidable. On the surface, it seems to be a battle of wills: each side asks for what it wants repeatedly, until the other concedes or refuses. The best tactic is to figure out how to get what you want, while giving away as little as possible.

However, Fisher and Ury advocate a different frame: a “Win-Win” in which both parties benefit. As you may imagine, there are a number of positives to be derived from this approach, even though it requires more skill. Among them is the ability to listen powerfully to what the other party is not saying aloud.

The fact is, each of us asks for stuff we want all day. However, especially when the stakes are high and emotions are raw, we unwittingly hide our true needs and emotional wants behind words. It simply feels too risky to be honest.

But we aren’t being sneaky; it’s just that emotional intent doesn’t translate neatly into actions or objects. For example, a husband who asks his wife to make a cheesecake for his birthday isn’t necessarily asking her to procure a baked good, and may be upset when she purchases one from a store.

For him, the intent is to experience her love and care which means seeing her sacrifice time and attention in the kitchen making the cake from scratch. He may unwittingly want to relive a memory provided by his mother.

But his actual words: “Would you bake a cheesecake for my birthday?” don’t convey his entire intent. Therefore, the mismatch between the two could result in a marital spat, or in the business world, a failed negotiation. How can you get past this sticking point if you find yourself in a similar spot?

1. Notice the mismatch

Skilled negotiators know how to use their intuition to discern such subtle gaps. Something deep inside them indicates that all is not well. However, you may find that your MBA-like training leads you to pay attention to the logic of what is happening: the discernible facts.

But that’s not enough. Furthermore, detecting uneasy feelings is necessary, but not sufficient. Once the inner shift is realized, you must translate the sensation into accurate words.

“It seems that we are making progress, but something inside tells me that we are missing a big part.”

This is a bold step: it’s a request to stop the negotiation in order to investigate a mere hunch based on intangible emotions. Unfortunately, most people self-censor, telling themselves: “Don’t be silly – just move on!” When they do so, everyone loses.

If you’d like to move past sticking points in your difficult conversations, it pays to tune in to your inner feelings, and speak up.

2. Probing for Underlying Commitments

If you do call a time-out, and things seem stuck, it could be that you are giving the other party exactly what they are asking for…but it’s not enough. This is a moment when your intuition can help you probe for deeper reasons.

“I know you asked for cheesecake, but why do you want that for your birthday?”

This is a masterful move in any negotiation because you are probing behind the stated position to see why it was raised in the first place. But this is more than curiosity.

Going deeper opens up the range of possible solutions. For example, the smell of home-cooked cake on a special day could be satisfied by other kinds of baked goods which are easier or less expensive to make.

When you expand the number of options, a Win-Win becomes far more likely. Plus, when you probe their hidden commitments it shows that you care. It’s as if you are setting aside the overt demand for cheesecake in order to give the other person what they really want.

In this context, this kind of listening is powerful as it invents brand new outcomes which neither side could predict beforehand. Without explicitly saying so, the two opposing sides are now working as a team.

For a breakthrough in negotiations, start by deeply listening beyond the words to yourself, and the other person’s true needs.